MIT11_481Js09_sw03

MIT11_481Js09_sw03 - MIT OpenCourseWare http/ocw.mit.edu...

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Unformatted text preview: MIT OpenCourseWare http://ocw.mit.edu 11.481J / 1.284J / ESD.192J Analyzing and Accounting for Regional Economic Growth Spring 2009 For information about citing these materials or our Terms of Use, visit: http://ocw.mit.edu/terms . Price Indices Photo source: U.S. Dept. of Labor Thomas H. Wonnacott and Ronald J. Wonnacott (1990). Introductory Statistics for Business and Economics. 4th Ed. New York: John Wiley and Sons, pp. 664 ‐ 677. U.S. Department of Labor, Bureau of Labor Statistics (2007). Chapter 17: “Consumer Price Index”, in BLS Handbook of Methods. Washington, DC: U.S. Government Printing Office. http://www.bls.gov/opub/hom/pdf/homch17.pdf Mark A. Wynne and Fiona D. Sigalla (1994). "The Consumer Price Index.“ Economic Review: Federal Reserve Board of Dallas. 2nd Quarter (Summer), pp. 1 ‐ 22. Jerry A. Hausman (1998). "New Products and Price Indexes." NBER Reporter, (Fall), pp. 10 ‐ 12. • Purpose: Nominal prices Real prices • Synopsis: Index numbers An index number is an economic data measure, reflecting price or quantity compared with a standard or base value. • compare business activity, the cost of living, employment and etc. • reduce unwieldy business data into easily understood terms. Index numbers Price index Quantity index Total cost index Definition Show how a whole set of price has changed Measure the increase in the quantities purchased Measure how much total cost increased Assumption Fixed quantity (or standard of living) Fixed price (or cost of living) Changes in both price and quantity Applying to personal consumers The cost of living The standard...
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This note was uploaded on 12/06/2011 for the course ESD 11.481j taught by Professor Karenr.polenske during the Spring '09 term at MIT.

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MIT11_481Js09_sw03 - MIT OpenCourseWare http/ocw.mit.edu...

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